Dutt made a good start to his bout winning the first round 1-0 but Kenichi Yumoto bounced back to win the second, earning 4 points to draw parity.
Yogeshwar Dutt again seized the initiative early in the decisive third round, going ahead 1-0 but failed to hold on to the lead in the last 10 seconds and gave away two match-winning points to his opponent to lose 2-1.
Earlier in the day, Dutt had beaten Kazakhstan's Baurzhan Orazgaliyeb 3-1.